Low Cost Home Ownership scheme FAQ
What is this scheme?
Who is eligible?
- Be over the age of 18
- Be a first-time buyer (consideration will also be given to those who have previously owned a property but have sold it, for example as a result of divorce)
- Be a UK or EU/EEA passport holder or have indefinite leave to remain in the UK
- Be able to raise a mortgage and be able to afford the financial costs of purchasing a property and paying a mortgage
- Use the property as your main residence
- Either be living or working in the county of the property or for those leaving the Armed Forces to have lived in the area for 6 months prior to joining
What sort of home can I buy?
The home that you buy from us will be brand new and usually built by a private housebuilder as part of a larger private development. We have varied purchasing opportunities at any given time, however most of the time the properties will be flats.
How does the Low Cost Home Ownership scheme work?
Once you have purchased, the equity loan will be secured on your property as a charge in favour of Hafod. Our charge will be ranked as second and immediately behind your first (conventional) mortgage if you have one.
When do I have to repay?
How much do I have to repay?
Once the value of your home is agreed you will then need to repay the relevant percentage (usually 30%) of that figure to us. For example, lets say that you purchased a property from Hafod for £100,000 and you received £30,000 toward the price which is equal to 30% of the purchase price.
If you wanted to repay after five years and your property was valued at £115,000 you would need to repay to Hafod £34,500 which is 30% of the new value.